Safran Sales Rise 7.8%, Driven By Aircraft-Engine Business

   By Robert Wall 
 

LONDON--Sales at French aerospace supplier Safran SA advanced 7.8% driven primarily by its aircraft-engine business.

Safran, which makes commercial jet engines for Boeing Co. and Airbus Group SE airliners, said adjusted revenue was 4.2 billion euros ($4.7 billion) for three months ended March 31, compared to 3.9 billion euros in the year prior. The company doesn't report profit for the January through March period.

The company confirmed full-year guidance of a low-single-digit rise in sales over 2015 with adjusted recurring operating income expected to increase around 5%.

Sales in the aerospace-propulsion segment rose the most, up 11%, to 2.3 billion euros. Revenue from aircraft-engine repairs and other services rose 8.2% and generated 54% of the unit's total sales.

"The strength of commercial air traffic momentum generates demand for services and supports airlines' plans to invest in new aircraft," Chief Executive Philippe Petitcolin said.

Safran with its joint venture partner General Electric Co. is introducing new engines, called Leap, for Airbus and Boeing single-aisle jets. The Paris-based company said Leap-powered Airbus A320 plane deliveries to airlines should begin in the summer. The Boeing 737 Max plane, which uses another version of the Leap engine, is due to enter service next year. Safran said the engine is on track to meeting expected performance goals.

Safran also benefitted from the export sale of French Dassault Aviation SA Rafale combat jets, for which it makes the engines. Seven of the M88 engines were delivered in the first quarter for foreign operators of the plane.

Safran last week announced the planned sale of its Morpho Detection unit to Smiths Group PLC for $710 million. The deal, which still requires antitrust approval, is due to close next year. The company is still assessing the future of its secure-identification activities.

Write to Robert Wall at [e-mail]

(END) Dow Jones Newswires

April 26, 2016 01:14 ET (05:14 GMT)

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